STATE WANTS PHONE PROFITS REFUNDED

TALLAHASSEE -- Southern Bell should refund $80 million in overearnings to customers instead of using the money for experimental phone services, Attorney General Bob Butterworth said Tuesday.

Gov. Lawton Chiles and the Cabinet gave Butterworth the go-ahead to intervene on behalf of the state with Southern Bell, which has profited from regulatory changes first imposed in 1988.

If approved by the state's Public Service Commission, most of the company's 3.7 million customers could get about $12 each in refunds.

In making his pitch to fellow Cabinet members, Butterworth submitted an analysis from Mike Twomey, an assistant attorney general.

Twomey warned that without Butterworth's intervention, there is a "high probability that the PSC may allow Bell to keep the money for purposes not consistent with the Florida statutes."

Twomey also said, "(Southern Bell) takes the rather arrogant and condescending view that it is better situated to spend its customers' money for their own long-term good."

Last month, the company offered to invest the money in telecommunications programs for schools, law enforcement and health care -- rather than dishing out the one-time refunds.

Surprised by the offer, the PSC gave Southern Bell three months to hammer out specifics of the plan.

"The commission hasn't approved anything," said Southern Bell spokesman Spero Canton. "It seems that this action is premature since there's no specific plan to oppose."

He said the company was trying to devise a plan in the best interests of customers. Health care and law enforcement efforts could be improved significantly by the proposed technical improvements, Canton said.

Butterworth and some commissioners, however, said they fear the company may eventually demand high-priced payment for these services once they're installed for free.

"That's definitely one of his concerns," said Butterworth spokesman Joe Bizarro. "Sometime down the road the consumers may have to pay for these."

PSC member Terry Deason said he welcomed Butterworth's action.

"Southern Bell has made us a new, innovative proposal," Deason said. "The more input we have, the better chance we have of making the best decision we can."